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DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI RESOURCE ELIGIBILITY 11/18 CHAPTER E PAGE 129 67. Trust Policy B Trusts may or may not be a resource. If a trust that was established by the individual is revocable, the individual’s portion of the trust principal is a resource to the individual. If the trust is irrevocable, the trust principal is not a resource but disbursements from the individual’s portion of the trust principal may be. This section of policy applies to trusts established with the assets of an individual (or spouse) on or after 1/1/00. • Trust Established by an Individual An individual is considered to have established a trust if any assets of the individual (or spouse), regardless of how little, were transferred to a trust other than by a will. o The transfer of an individual's property to an existing third party trust is considered to be the establishment of a trust subject to the provisions of this section if:  The transfer occurs on or after 1/1/00; and  The principal of the trust does not contain property transferred from the individual prior to 1/1/00. 67.1. Trust Rules Versus Transfer Rules for Assets in a Trust When an individual transfers assets to a trust, he/she generally transfers ownership of the asset to the trustee. In some cases, this could be considered a transfer of resources. In order to avoid both counting a trust as a resource and imposing a transfer of resources penalty for the same transaction, the trust provisions take precedence over the transfer provisions. If there are portions of the trust that cannot be counted as a resource, then the transfer rules may apply to that portion of the trust. See Resource Transfers Chapter G. 67.2. Trust Evaluation These provisions apply to trusts without regard to: • The purpose for which the trust was established; • Whether the trustees have or exercise any discretion under the trust; • Any restrictions on when or whether distributions may be made from the trust; or • Any restrictions on the use of distributions from the trust.